How GeoWealth Started, Grew And Adapted To Meet Changing Market Conditions
This article was originally published on Wealth Solutions Report in november 2024.
Building a wealthtech company from scratch and making it a success requires understanding not only the complexities of the specific technology in order to make the product function correctly, but the needs of wealth management professionals who will use the product in order for the wealthtech firm to grow its customer base.
Dive into this Q&A to hear from GeoWealth's Chief Growth Officer, Brendan Falls, in conversation with Wealth Solutions Report's Larry Roth.
Q&A With Wealth Solutions Report
Getting started
WSR: How did you get the idea for GeoWealth’s RIA-focused strategy? What gap did you see in the market, how did you decide on the initial product suite, and how did you go about recruiting the team to build out everything necessary for a successful launch?
Falls: The legacy turnkey asset management platform (TAMP) structure has traditionally dominated the independent broker-dealer space, but RIAs were largely using technology to manage their own models and operate the needed technology tools themselves for trading, reporting, billing, etc. We identified a value in the market to offer RIAs the benefit of outsourcing and unified managed account (UMA) capability, but also allow them to keep control of managing their own portfolios. Crucially, we also developed a very supportive service model to support firms.
We started out inside an RIA, and with our President and COO Jack Hannah previously serving as the head of operations there, we were very in tune with the operational needs of that business model. But, like any growing technology company, it’s been an iterative journey as we have developed and grown our offering, anchored by our unique proprietary portfolio accounting system. As we’ve grown, we’re pretty convinced that delivering unique UMA solutions are a major value for clients and a growth lever for the firm.
gaining traction
WSR: How did you win your first clients for GeoWealth?
Falls: For a new entrant into the RIA space like GeoWealth, there was significant value in the inherent independence of RIAs, who are always seeking best-in-class solutions to meet their clients’ needs and their own unique business needs. Early on, GeoWealth was fortunate to connect with forward-thinking advisors who recognized GeoWealth as a unique partner capable of addressing their operational pain points.
Our first adopters saw tremendous value in partnering with us to implement their own model management within the flexibility and customization of a UMA framework. There’s also a strong correlation among these clients: They all fundamentally understand UMAs, the benefits they offer and the gaps in their current infrastructure that GeoWealth can help address.
the evolution
WSR: How has the business model, service offering and product suite for GeoWealth changed over time? Why did GeoWealth decide to spin out of the RIA that was initially part of the company and is no longer?
Falls: GeoWealth’s business model, service offering and product suite have consistently evolved in response to the changing needs of advisors and their clients. Recently, the desire to deliver custom model solutions to high net worth clients has driven new evolutions in how we think about model portfolios. Traditionally, model portfolios have been designed for the mass-affluent market, relying heavily on ETFs and mutual funds. Serving high net worth clients requires more sophisticated portfolio solutions – ones that offer tax benefits and tailored product incorporation to address their unique needs in a scalable way.
By integrating offerings like direct indexing and fixed-income SMAs within a model framework, along with in-demand investment such as semi-liquid alternatives, GeoWealth is enabling advisors to deliver scalable and differentiated portfolio solutions.
Facing Challenges
WSR: What have been the major challenges that GeoWealth has faced along the way, and how has the company overcome them?
Falls: One of the major challenges GeoWealth has faced is building our brand to the point where, when advisors consider making a change, we’re among the handful of names that are immediately considered. While many firms recognize GeoWealth as the better solution, the decision to make a change is often part of a longer, more deliberate process. By emphasizing the tangible benefits of our platform – scalability, flexibility and customization – we’ve successfully addressed these challenges and positioned ourselves as a trusted partner for RIAs.
Brotherly love
WSR: What has it been like working so closely with your brother at GeoWealth?
Falls: My younger brother is my boss, so I must be out of my mind! But in all seriousness, working with Colin [Falls, GeoWealth’s CEO] has been incredibly complementary. We have a unique dynamic built on complete honesty and trust. We don’t always agree completely, and we challenge each other constantly, but in a productive way. We’re also comfortable delivering hard truths to each other. The same is true for Jack, Cliff Schoeman (Chief Product Officer) and the rest of the executive team. We are very collaborative and complementary, but we also hold each other accountable.
Looking ahead
WSR: What are GeoWealth’s plans for future growth? What can you hint at in the pipeline in terms of M&A / integrations / clients / enhancements / product launches?
Falls: GeoWealth’s journey has been one primarily consisting of organic growth and that will continue to be the case. We will continue to deliver more customization through scalable model solutions on its UMA infrastructure.
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